| Energy Commodity Derivatives |
The following table presents the underlying energy commodity derivative volumes as of September 30, 2014 that are expected to be delivered in each respective year (in thousands of MWhs and mmBTUs): | | | | | | | | | | | | | | | | | | | | | | | | | | Purchases | | Sales | | Electric Derivatives | | Gas Derivatives | | Electric Derivatives | | Gas Derivatives | Year | Physical (1) MWH | | Financial (1) MWH | | Physical (1) mmBTUs | | Financial (1) mmBTUs | | Physical (1)
MWH | | Financial (1)
MWH | | Physical (1)
mmBTUs | | Financial (1)
mmBTUs | 2014 | 237 |
| | 720 |
| | 12,660 |
| | 39,325 |
| | 138 |
| | 885 |
| | 1,496 |
| | 24,288 |
| 2015 | 508 |
| | 2,436 |
| | 13,413 |
| | 115,860 |
| | 254 |
| | 2,935 |
| | 1,490 |
| | 89,925 |
| 2016 | 397 |
| | 948 |
| | 2,505 |
| | 63,173 |
| | 287 |
| | 1,634 |
| | 910 |
| | 52,713 |
| 2017 | 397 |
| | — |
| | 675 |
| | 2,895 |
| | 286 |
| | — |
| | — |
| | 2,895 |
| 2018 | 397 |
| | — |
| | — |
| | — |
| | 286 |
| | — |
| | — |
| | — |
| Thereafter | 235 |
| | — |
| | — |
| | — |
| | 158 |
| | — |
| | — |
| | — |
|
| | (1) | Physical transactions represent commodity transactions where Avista Utilities will take delivery of either electricity or natural gas and financial transactions represent derivative instruments with no physical delivery, such as futures, swaps or options. |
|
| Foreign Currency Exchange Contracts |
The following table summarizes the foreign currency hedges that the Company has entered into as of September 30, 2014 and December 31, 2013 (dollars in thousands): | | | | | | | | | | September 30, | | December 31, | | 2014 | | 2013 | Number of contracts | 23 |
| | 23 |
| Notional amount (in United States dollars) | $ | 15,734 |
| | $ | 8,631 |
| Notional amount (in Canadian dollars) | 17,326 |
| | 9,191 |
|
|
| Interest Rate Swap Agreements |
The following table summarizes the interest rate swaps that the Company has entered into as of September 30, 2014 and December 31, 2013 (dollars in thousands): | | | | | | | | | | Balance Sheet Date | | Number of Contracts | | Notional Amount | | Mandatory Cash Settlement Date | September 30, 2014 | | 2 | | $ | 50,000 |
| | 2014 | | | 5 | | 75,000 |
| | 2015 | | | 5 | | 95,000 |
| | 2016 | | | 3 | | 45,000 |
| | 2017 | | | 7 | | 155,000 |
| | 2018 | December 31, 2013 | | 2 | | 50,000 |
| | 2014 | | | 2 | | 45,000 |
| | 2015 | | | 2 | | 40,000 |
| | 2016 | | | 1 | | 15,000 |
| | 2017 | | | 4 | | 95,000 |
| | 2018 |
|
| Derivative Instruments Summary |
The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of September 30, 2014 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | Derivative | | Balance Sheet Location | | Gross Asset | | Gross Liability | | Collateral Netting | | Net Asset (Liability) in Balance Sheet | Foreign currency contracts | | Other current liabilities | | $ | — |
| | $ | (280 | ) | | $ | — |
| | $ | (280 | ) | Interest rate contracts | | Other current assets | | 7,106 |
| | — |
| | — |
| | 7,106 |
| Interest rate contracts | | Other property and investments - net | | 4,933 |
| | (3,786 | ) | | — |
| | 1,147 |
| Interest rate contracts | | Other non-current liabilities and deferred credits | | 1,261 |
| | (30,699 | ) | | 12,730 |
| | (16,708 | ) | Commodity contracts (1) | | Current utility energy commodity derivative assets | | 11,371 |
| | (8,037 | ) | | — |
| | 3,334 |
| Commodity contracts (1) | | Non-current utility energy commodity derivative assets | | 10,639 |
| | (8,946 | ) | | — |
| | 1,693 |
| Commodity contracts (1) | | Current utility energy commodity derivative liabilities | | 21,002 |
| | (26,060 | ) | | 49 |
| | (5,009 | ) | Commodity contracts (1) | | Other non-current liabilities and deferred credits | | 10,537 |
| | (25,383 | ) | | 886 |
| | (13,960 | ) | Total derivative instruments recorded on the balance sheet | | $ | 66,849 |
| | $ | (103,191 | ) | | $ | 13,665 |
| | $ | (22,677 | ) |
The following table presents the fair values and locations of derivative instruments recorded on the Condensed Consolidated Balance Sheet as of December 31, 2013 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | Derivative | | Balance Sheet Location | | Gross Asset | | Gross Liability | | Collateral Netting | | Net Asset (Liability) in Balance Sheet | Foreign currency contracts | | Other current assets | | $ | 7 |
| | $ | (6 | ) | | $ | — |
| | $ | 1 |
| Interest rate contracts | | Other current assets | | 13,968 |
| | — |
| | — |
| | 13,968 |
| Interest rate contracts | | Other property and investments - net | | 19,575 |
| | — |
| | — |
| | 19,575 |
| Commodity contracts (1) | | Current utility energy commodity derivative assets | | 7,416 |
| | (4,394 | ) | | — |
| | 3,022 |
| Commodity contracts (1) | | Non-current utility energy commodity derivative assets | | 7,610 |
| | (6,756 | ) | | — |
| | 854 |
| Commodity contracts (1) | | Current utility energy commodity derivative liabilities | | 23,455 |
| | (37,306 | ) | | 2,976 |
| | (10,875 | ) | Commodity contracts (1) | | Other non-current liabilities and deferred credits | | 17,101 |
| | (41,213 | ) | | 5,756 |
| | (18,356 | ) | Total derivative instruments recorded on the balance sheet | | $ | 89,132 |
| | $ | (89,675 | ) | | $ | 8,732 |
| | $ | 8,189 |
|
| | (1) | Avista Corp. had a master netting agreement that governed the transactions of multiple affiliated legal entities under this single master netting agreement. This master netting agreement allowed for cross-commodity netting (i.e. netting physical power, physical natural gas, and financial transactions) and cross-affiliate netting for the parties to the agreement. Avista Corp. performed cross-commodity netting for each legal entity that is a party to the master netting agreement for presentation in the Condensed Consolidated Balance Sheets; however, Avista Corp. did not perform cross-affiliate netting because the Company believed that cross-affiliate netting may not be enforceable. Therefore, the requirements for cross-affiliate netting under ASC 210-20-45 were not applicable for Avista Corp. As of December 31, 2013, all derivatives for each affiliated entity under this master netting agreement were in a net liability position. As such, there was no additional netting which required disclosure for that period. In May 2014, this master netting agreement was terminated and each affiliated legal entity is now under their own separate agreement. As of September 30, 2014, the Company no longer has any agreements where cross-affiliate netting is allowed under the agreement, but not performed by the Company. |
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